Mining Press Roundup: Pentagon Backs Rare Earths with $725M Energy Fuels Loan

The U.S. Department of Defense announced a conditional loan commitment of up to $725 million to expand Energy Fuels' domestic rare earth processing operations and strengthen U.S. supply chains independent of China. The 20-year loan represents one of the Pentagon's largest critical minerals investments to date and underscores Washington's determination to break China's stranglehold on rare earth separation and metallization—the crucial midstream steps between mining and magnet production.

Energy Fuels: Pentagon Commits $725M for Rare Earth Independence

Energy Fuels shares jumped on Thursday after the U.S. Department of Defense announced a conditional loan commitment of up to $725 million to expand the company's domestic rare earth processing operations, with the financing intended to support a new U.S.-based rare earth separation and metallization plant.

The stock rose 9.6% to C$23.69 in Toronto on Thursday morning, valuing the company at C$5.78 billion.

The 20-year loan is earmarked for expanding processing infrastructure at the White Mesa Mill in Utah — America's only conventional uranium mill — and building a new metals and alloys plant for rare earths. According to market data, about 90% of separation and metallization steps are carried out in China , making the Pentagon's investment a strategic priority for defense supply chains. Commercial production of samarium, europium, gadolinium, terbium and dysprosium is slated to begin between late 2027 and early 2028.

Energy Fuels, historically a uranium producer, plans to expand into rare earth processing for permanent magnet manufacturing. The company must still satisfy financial, legal, technical and other due diligence requirements before the loan closes, but the conditional commitment signals strong federal backing for domestic critical mineral production.

enCore Energy: Federal Approval Clears Path for South Dakota's First Uranium Mine

enCore Energy has received final approval from the Bureau of Land Management (BLM) to begin infrastructure construction at the Dewey Burdock Uranium in-situ recovery (ISR) project in south-west South Dakota, US. After more than a decade of local opposition and regulatory review, the approval marks a significant milestone for domestic uranium production.

The decision follows the completion of an Environmental Assessment and a Finding of No Significant Impact, allowing enCore's 100%-owned subsidiary, Powertech, to build initial ancillary infrastructure across approximately 240 acres of public land managed by the BLM, with federally approved works including construction of primary and secondary access roads, four groundwater monitoring wells, and installation of overhead power lines.

The project will recover uranium from subsurface sandstone ore bodies through In-Situ Recovery technology, which uses an oxygen and water-based solution in the production wellfield to dissolve uranium minerals in place, then the uranium-bearing solution is pumped to a central processing plant to recover the uranium, allowing for minimal surface disturbance compared to conventional open-pit or underground uranium mining. According to market data, the global uranium market entered 2026 with strong momentum, as spot uranium prices surged by roughly 25% in January, surpassing $100 per pound for the first time in two years, reflecting growing confidence in nuclear energy and mounting concerns about long-term supply constraints.

BHP: $2.3 Billion Impairment on Jansen Potash as Costs Balloon Again

BHP Group plans to record a $2.3-billion impairment charge on its giant Jansen potash mine in Saskatchewan due to cost and timing overruns for the project's planned expansion, with the world's biggest miner opting for the write-down after conducting a "comprehensive review" of the mine's stage two.

The expansion is now expected to cost $6.9 billion — about $2 billion more than its previous estimate.

Melbourne-based BHP greenlit the stage two expansion in October 2023 as rising fertilizer prices after Russia's invasion of Ukraine provided a favourable market environment, with first production of stage two initially set for 2029, but due to the cost overruns for stage one, management has since decided to delay the project by two years.

First production is targeted for late in the 2031 fiscal year, which ends that June.

Most of the cost increase for Jansen stage two comes from "additional construction hours and quantities of materials," BHP says. The impairment underscores the challenges facing mega-projects in remote locations, where labor shortages, supply chain disruptions, and engineering complexities routinely blow past initial estimates. Stage 1 of the Jansen project remains on schedule for first production in mid-2027, BHP said.

Falco Resources: Quebec Gold Project Value Triples to $3.3 Billion

An updated feasibility study for Falco Resources' Horne 5 polymetallic project in western Quebec more than triples the project's value, with the update giving Horne 5 a post-tax net present value (NPV) of C$3.35 billion, a 244% increase from the NPV in the 2021 feasibility, while initial capital costs rose 62% to C$1.75 billion.

The internal rate of return gained almost 10 percentage points to 28% for Horne 5, where Glencore has development rights and a nearby smelter.

The study shows robust returns with base case after-tax NPV5% of $3.35 billion, unlevered after-tax IRR of 28.2% and after-tax payback of 3.3 years, generating projected life-of-mine after-tax cash flow of $6.4 billion and average annual after-tax cash flow of $542.5 million. The dramatic improvement in project economics reflects surging gold prices, which according to market data traded at $4,188/oz on Friday, down 2.1% on the day but still near multi-year highs.

The 2026 FS reaffirms that the Horne 5 Project represents a robust, high margin, 15-year underground mining project with compelling economic returns. The Quebec government confirmed the project's environmental review is nearing completion, potentially clearing the path for development decisions in coming months.

Newmont: Cadia Gold Mine Halted After Second Earthquake in Nine Weeks

A magnitude-3.4 quake was recorded Friday at about 5:45 a.m. local time within the Cadia mine site, following a magnitude-3.2 tremor, which was recorded at about 3:20 a.m. Underground operations at Newmont's Cadia gold mine in Australia have been suspended for the second time in nine weeks following seismic activity at one of the country's largest mining operations.

Friday's earthquakes follow a 4.5-magnitude event at Cadia on April 14, which led Newmont to suspend underground mining for about five weeks, with no significant damages reported.

Newmont subsequently disclosed a five-week rehabilitation process to reach 80% of Cadia's capacity, with "full normalization" projected for the third quarter.

Cadia accounts for about 11% of Newmont's net asset value, according to RBC Capital Markets, with Newmont gaining full control of the operation in November 2023 when it completed the $19 billion acquisition of Newcrest Mining.

Newmont shares fell 6.7% to A$143.47 Friday in Australian Stock Exchange trading, valuing the company at about $111 billion. The repeated seismic events raise questions about the long-term viability of panel cave mining at depth in the region and could trigger additional regulatory scrutiny.

St Barbara: Nova Scotia Gold Hub Enters Federal Permitting Process

Australia's St Barbara has advanced plans for its Nova Scotia gold development after Canada's impact assessment regulator accepted the initial project description for the proposed 15-Mile Processing Hub, with the Impact Assessment Agency of Canada completing its conformity review and releasing the filing for a 20-day public comment period before deciding whether a full federal impact assessment is required.

The project design aligns with a Prefeasibility Study announced in January, which confirmed gold production of more than 100,000 ounces per annum over 11 years based on proven and probable ore reserves.

The company expects the project to generate a C$5 billion GDP impact for Nova Scotia, alongside creating over 1,300 jobs during construction and approximately 740 positions throughout operations.

The project covers the redevelopment of three historic mining sites in Nova Scotia: the 15-Mile Mine, the Old Austen Mine, and the Old Mitchell Mine, with the company eliminating the need for three separate processing plants by utilising the 15-Mile site as the sole processing hub, reducing overall land disturbance by 23% despite the increased capacity. The submission marks a major step forward for St Barbara's Canadian expansion strategy as the company seeks to diversify beyond its Australian operations.

What It Means

Critical minerals dominated this week's mining headlines, with the Pentagon's $725 million commitment to Energy Fuels and the BLM's approval of enCore Energy's Dewey Burdock project underscoring Washington's push to secure domestic supply chains for strategic materials. The uranium sector in particular is seeing accelerated permitting and federal support as policymakers recognize nuclear power's role in energy security and AI infrastructure buildout.

Meanwhile, BHP's $2.3 billion Jansen impairment serves as a sobering reminder that mega-project economics remain challenging even for the world's largest miners. Cost inflation, labor constraints, and engineering complexity continue to plague greenfield developments, particularly in remote jurisdictions. The contrast with Falco Resources' Horne 5 update—where rising commodity prices tripled project value—illustrates how market conditions can make or break mining economics. Gold's rally to over $4,000/oz is breathing new life into projects that looked marginal just a few years ago, while potash's more subdued pricing environment leaves BHP defending a multi-billion-dollar bet that won't pay off until the 2030s.

This roundup covers press releases published on June 19, 2026. Company announcements are sourced from mining industry wire services. For corrections or updates, contact contact@stakeandpaper.com.